What managerial accounting topics would help run a business? If hired as an accountant, what would be the first few things you think should implement (i.e. accounting system) that would help expansion run smoother due to mass demand of product and falling behind? How would you would "pitch" this information?
Managerial accounting is internal accounting aimed to provide quantitative results and analysis for management to make better informed business decisions. Managerial accounting is different that financial accounting because managerial accounting does not follow an authoritative guidance like financial accounting follows US Generally Accepted Accounting Principles (US GAAP).
Answer and Explanation:
Managerial accounting topics that help a run a business include cost accounting in order to track cost of producing a product including tracking overhead, labor, and material costs. Other topics include financial return metrics such as return on investment, inventory turns, free cash flow conversion, and more. Capital budgeting and trend analysis are also useful to learn areas of improvement for a business.
I would pitch an ERP or Enterprise Resource Planning software such as SAP, Oracle, or Great Plains. This type of software would be able to track the flow of business transactions such as tracking a purchase order to being filled to delivery to payment. It also can track the cost side such as how much inventory is in stock at which average prices. It automates many manual tasks that can reduces the likelihood of human error. It is a large investment upfront but will result in cost savings from less manual labor and more accurate results and better tracking in order to make better informed business decisions. These systems can track lead times as well in order to provide information on how to manage supply and demand.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Business Management: Help & ReviewChapter 9 / Lesson 1